Opening statements got underway Wednesday in the federal racketeering trial of Huawei Technologies Co. in Brooklyn, marking the start of proceedings against the Chinese telecommunications giant after nearly eight years of litigation.
U.S. District Judge Ann Donnelly is presiding over the case in the Eastern District of New York. Jury selection concluded earlier in the week, and the trial is expected to last several months. Huawei and its affiliates have pleaded not guilty to the remaining 12 counts, which include racketeering conspiracy, bank fraud, wire fraud, trade secret theft, and related charges.
Prosecutors allege that Huawei operated a criminal enterprise spanning roughly two decades to expand its global business by stealing intellectual property from American companies and evading U.S. sanctions on Iran through a Hong Kong shell company called Skycom. The government claims the scheme involved misleading major banks about Huawei's business dealings in sanctioned countries and included efforts to obtain trade secrets from firms such as T-Mobile and others.
The case was narrowed shortly before trial when prosecutors dropped two sanctions-related counts and one trade secret allegation. No individual executives are facing trial in this proceeding. Chief Financial Officer Meng Wanzhou reached a separate deferred prosecution agreement years earlier and is not part of the current case.
The indictment traces some conduct back to the late 1990s and accuses Huawei of using surveillance equipment supplied to Iran that allegedly helped track protesters during 2009 demonstrations. The company has consistently denied all wrongdoing and described the prosecution as politically motivated.
This trial represents one of the most significant U.S. criminal cases brought against a major Chinese corporation, reflecting longstanding concerns over intellectual property protection and compliance with export controls. A conviction could result in substantial fines and forfeiture for Huawei.
The proceedings coincide with heightened U.S.-China tensions, though the judge instructed jurors that China and the Communist Party are not on trial.
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